Connect with us

Business Marketing

Pandora ads wield the power of music

(MARKETING) Pandora’s study on how a personal music experience affects the brain is likely to change how advertisers think.

Published

on

pandora

The power of music

Regardless of personal taste, it’s likely difficult to disagree with the idea that music can have some pretty powerful mojo. Its effects on the brain have been the subject of countless studies, which in turn have led to several products which are said to contain “brain-enhancing” tunes.

bar
One of the primary neural functions music is said to enhance is memory. Well, looks like Internet radio O.G. Pandora may be able to use that to sell their ad services to companies looking to market their products.

Apparently your favorite music helps you remember

Adweek reports that Pandora recently hired neuromarketing company Neuro-Insight to test how effective their ads are. Neuro-Insight proceeded to measure the brain activity of 100 individuals while they listened to about 30 minutes of their own personalized playlists with the occasional ad between songs.

The results of the study showed that the ads spliced between songs had a significantly higher impact on the participants’ long-term memories compared to other popular forms of advertising.

Broken down, they had a 49% higher impact than those featured in terrestrial radio, 39% higher than mobile video ads, and 36% better than T.V. ads. Pandora’s video ads had a higher impact as well, faring 5% better than mobile video ads from competing platforms.

A unique experience

The reasoning for this seems to be primarily related to the highly personalized musical experience that Pandora offers. It is well known that music can stir up emotion, and that, combined with the fact that listeners are able to decide the type of music that plays on their Pandora station, creates a somewhat more intimate experience than that of a typical radio station or T.V. channel.

As such, the brain is more likely to prioritize the information it receives at this time and store it accordingly.

Whether the memories be explicit (such as remembering specific details of the brand) or implicit (a vague recognizance of a product), they are much more likely to affect consumer choices. After all, one is much more likely to purchase from a brand they recognize than one they do not- unless the product sucks, of course.

Using the numbers

Pandora is likely to use the results of the study to help drive its advertising revenue, however, there are takeaways from this that are applicable to all businesses.

For starters, they show that videos may not always be the most effective form of advertising.

Audio and graphic ads are still very much relevant and effective. Similarly, it shows how important it is to know when to advertise. It is unnecessary and ineffective to barrage consumers with advertisements to the point of tedium.

We can all relate to waiting for the 'Skip this ad' button and frantically clicking it before every other YouTube video.Click To Tweet Sometimes, subtlety is key.

**Also, I would like to note how neat it is that neuromarketing companies are a thing. Well played, science.

#MusicMakesYouRemember

Andrew Clausen is a Staff Writer at The American Genius and when he's not deep diving into technology and business news for you, he is a poet, enjoys rock climbing, monster movies, and spending time with his notoriously naughty cat.

Continue Reading
Advertisement
1 Comment

1 Comment

  1. Pingback: SiriusXM invested in Pandora, but is the nail already in their coffins? - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *

Business Marketing

Restaurants might actually lose money through Grubhub and similar services

(BUSINESS MARKETING) Restaurant owners are asking themselves if third-party food delivery apps are nothing more than a good, old-fashioned shakedown.

Published

on

grubhub site

If you haven’t seen the GrubHub receipt that has everyone outraged, you probably should. It exposed the food delivery apps for their unreasonably high commissions and excessive charges to the restaurants (on top of the changes to the consumer).

Many people, in an honest attempt to support local restaurants while staying home and safe these days, have started ordering out from their favorite small, local eateries. And they should! This could be the lifeline that allows those restaurants to survive being closed for upwards of a month. However, if they order through a third-party food delivery service, they need to know that a good chunk of their money goes to the service, not the local business. Plus they are paying extra for the service.

It’s a big bummer, to say the least, a bamboozle some might say. Why would restaurants agree to use these services at all, then, if they aren’t beneficial? Well, they initially served the purpose of helping smaller restaurants and food trucks sell to a wider customer base without having to incur the cost and manage the logistics of offering delivery. Not all of the charges are immediately apparent, either, although I am sure they are in the business agreement.

GrubHub, DoorDash, Postmates, UberEats all charge eateries a commission between 15%-30% to even work with them. This is for the most basic level of service. When GrubHub, for example, wants to stimulate more sales, they may offer a deal to consumers. This could be a dollar amount or percentage off of a customer’s order or free delivery.

Everybody loves a deal, so these promotions are effective. They drive more sales, yay. The restaurants, however, incur the full cost of the promotion. You would imagine GrubHub would share that cost, but no, they don’t. If that weren’t unscrupulous enough, GrubHub then charges the business the commission on the full, not discounted, price of the order. Unctuous, right?

Sure, restaurants have to opt in for these specials and other promotions the third-party apps are marketing, so they know there’s a fee. Yet, if they don’t opt in, they won’t appear as an option for the deal in the app. It’s deceptive, feels like a bit of extortion to me. All of these delivery apps have some sort of similar way to rack up fees. For a mom-and-pop food truck or restaurant, the commissions and fees soon eat away at the already small profit margins restaurants usually have.

It’s simply wrong, so wrong. But wait, there’s more! Another nasty, duplicitous practice GrubHub (specifically GrubHub) has implemented, with Yelp’s help, is to hijack the restaurant’s phone number on Yelp. This means if you look up your favorite restaurant on Yelp, and call in an order from the Yelp platform, your call will actually go to GrubHub instead. And get this–they charge the restaurant even if you pick up the order yourself, not only for delivery.

These third-party companies have even started buying up domain names similar to the restaurants to further fool patrons into ordering through them. They also have added restaurants to their platforms, even if the restaurants haven’t agreed to work with them. They seem willing to do anything to get a cut of restaurants’ hard earned dough (and ours). Loathsome! How are these scams even legal?

It happened to me recently. I kept trying to order for pickup at the restaurant, but somehow the order kept going through GrubHub. Bamboozled!

RVB bamboozled

This boils my blood and breaks my heart for these restaurants. In my other life, I am a blogger for a hyperlocal blog whose sole purpose is to highlight, celebrate, and promote local everything. I’m also the internal marketing chair for the Austin Food Blogger Alliance, where we work with local restaurants, distilleries, breweries, and such to promote them and help raise their visibility in the community.

I only bring this up, because I’ve sat with these restaurant and food truck owners, listened to their stories, seen the fire in their eyes as they talk about their recipes. They’ve regaled me with stories of how they got started, what inspires them, and when they had their first successful day. It’s delightful to see the intensity of their enthusiasm for sharing good food with people and how much of themselves they put into their restaurants.

In the original post that lifted the curtain on this shady practice, the Chicago Pizza Boss food truck owner Giuseppe Badalamenti, says the money he got from his GrubHub orders was “almost enough to pay for the food.” Badalamenti had participated in some promotions, which admittedly reduced his cut dramatically, yet the whole premise came as a shock to customers who have been spending their dollars to keep these local businesses afloat. Then here comes the third-party apps, poking a hole in the floaties.

It comes across as downright predatory. Thousands of people have sworn off these apps in favor of calling the restaurant directly for pickup if you are able. This way, you ensure the business you want to support gets the full bill amount. You can get the restaurant’s number directly from Google Maps or the business’s social media or website. This is the best way to help your favorite places stay in business.

Continue Reading

Business Marketing

TikToks new augmented reality ads seeks new audiences

(BUSINESS MARKETING) TikTok product developers hustle to roll out a new augmented reality brand effect to compete with Snapchat and Instagram.

Published

on

augmented TikTok

TikTok is getting ready to launch a new ad feature to level the playing field with Snapchat and Instagram. The unofficially named “AR brand effect” will allow TikTok users to incorporate augmented reality brand advertisements in their videos. The ads will create visual effects that interact with the filmmakers’ physical environment as if it exists in real life. The ads will include music that can be played over the film.

TikTok also offers an ad product called Brand Effect, a 2D advertisement filter that users can add to their videos. The in-house product development team at TikTok created this feature for a reported cost of $100,000 according to Digiday.

Snapchat already has its AR brand experiences called the Sponsored Lens and Word Lens, which allow brands to create augmented reality filters to advertise via Snapchat’s users and their interactions with friends.

Snapchat charges anywhere from $50 to $500,000 for augmented reality advertisements. The lower tier starts with a 10-second ad between videos that users can choose to “swipe up” and interact with. The higher tiers get advertisers a day-long spot with a Sponsored Lens.

Though the efficacy of this advertising strategy appears to be hit-or-miss, the creative opportunities for advertising to a wide audience is attractive enough to keep this product development relevant. TikTok and its Chinese counterpart Douyin clocked in two billion downloads in the month of March. Its users skew young with 41% between the ages of 16 and 24, and its global following boasts 800 million users worldwide.

TikTok is moving with adept agility to roll out new products to keep its increasingly large user base engaged. “They are doing it a lot quicker [than competitor social media platforms],” media agency Starcom told Digiday. “Their ability to scale and move forward is frightening, really. If they get it right they’re going to be a huge player in the next six months to a year.”

TikTok is also working on new ad products that allow advertisers to connect with prominent influencers. With the future of stay-at-home orders looking to turn into an interminable cycle, it will be telling to understand how these advertising strategies will effect e-commerce and digital brand experiences.

Continue Reading

Business Marketing

Bistro owner rewards 1 star reviews to beat Yelps ‘algorithm’ racket

(BUSINESS MARKETING) Botto Bistro Restaurant owner gives absolutely no f***s and recruits negative Yelp reviews for sport. Maybe yelp should be “persuaded” to chill.

Published

on

Botto bistro pizza

Chef Davide Cerretini is a legend. If you don’t know his name, maybe you have heard of Botto Bistro, the Richmond, California restaurant that once held the honor of worst-rated restaurant on Yelp.

In 2014, Cerretini offered pizza discounts in exchange for bad Yelp reviews. Yes, you read that right – one star review earns you 25% off your pizza. When Yelp complained, Cerretini upped the ante to 50% off.

Doesn’t Yelp punish restaurants for exchanging incentives for reviews? Yes – but don’t forget Cerretini does not give a flying fart what Yelp thinks. In fact, he started the ploy to beat Yelp at its own game.

According to Cerretini, and many other small business owners, Yelp participates in what amounts to extortion of restaurant owners. Sales reps reach out to these businesses and urge them to buy an ad for a monthly fee. Upon buying the ad, some mysterious algorithm filters more positive reviews to the top of the restaurant’s page. No one knows what the algorithm is or how exactly it works, but it seemed no coincidence to Cerretini that his best reviews disappeared and bad ones rose to the top after he refused to participate.

“I came from Italy, and know exactly what mafia extortion looks like,” he says. “Yelp was manipulating reviews and hoping I would pay a protection fee. I didn’t come to America and work for 25 years to be extorted by some idiot in Silicon Valley,” Cerretini told the Hustle.

Cerretini’s plan worked. In one day he attracted a month’s worth of business in response to the discount incentive for a one-star review. After a few more days, there were 2,300 one-star ratings.

Botto Bistro has since been sold to Mountain Mike’s Pizza. But Cerretini’s legacy is far from forgotten. In fact, he kept the website as a monument to his success: “We would like to thank Yelp for being so stupid and arrogant that they tried to extort the Italians. In doing so they allowed us to have fun, increase our business and our popularity, troll them for the last 6 years, sell our place at a profit, and forge a new career that took us all over the world exposing them for the idiots they are.”

Botto Bistro has a 2.5 star rating on Yelp from 283 reviews. Italy 1, Silicon Valley 0.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!